CHENNAI: The Madras High Court dismissed a petition filed challenging the Income Tax department’s proceedings for provisional attachment of properties in connection with benami transactions. The petitioner is VSJ Dinakaran of Perambur, one of VK Sasikala’s benamis in the purchase of Spectrum Mall using Rs 1,911 crore demonetised currency.
The first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan refused to interfere with the orders of the Appellate Tribunal under SAFEMA in condoning a delay of 763 days in filing an appeal.
The Income Tax department’s Benami Prohibition wing had filed the appeal before the Appellate Tribunal seeking to reverse the December 16, 2025 order of the Adjudicating Authority which refused to confirm the order of attachment of properties of Dinakaran.
The department, after finding him involved in receiving Rs 18 crore for his shares in the mall, issued provisional attachment orders under section 24 (3) of the Prohibition of Benami Property Transaction Act, 1988.
The Adjudicating Authority refused to confirm the provisional attachment order. Challenging this, the department moved an appeal before the Appellate Authority under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) and requested condonation of 763 days. The Appellate Authority allowed the condonation using its discretion on the merits of the appeal.
However, Dinakaran filed the current petition against the Appellate Authority’s order.
The bench noted the Appellate Authority has condoned the delay in the interest of substantial justice for adjudicating the appeal on merits as many other connected appeals between the same parties are already pending.
It said the court cannot interfere unless the exercise of discretion was on untenable grounds or arbitrary or perverse.